Sixty years ago today, my grandfather, father, uncle, and first cousin were watching the Yankee game in the family home on Miller Ave. in Brooklyn. Yogi Berra hit a home run as Ralph Terry bettered Jim Perry and the Cleveland Indians 4-2 in the original Yankee Stadium. That same day, the first edition of ABC’s Wide World of Sports was broadcast. I was born that evening. I do not recall any of those three events.
So, what does turning sixty years old mean to me? Frankly, I have a sense of joy and accomplishment. No regrets. No fear of dying. I am married to the love of my life, Layni. Together we had six children (one, Noah, we lost at full term). We raised those five surviving children, Cory (attorney), Danielle (nurse), Carly (graphic designer and MBA student), Steven (concierge and MBA student) and Adam (UNLV student) to be wonderful adults for which we are proud of each and every one; and, hope to soon welcome Amie (Cory’s fiancé, a 4th grade teacher) into the family. No pressure, but I do look forward to becoming a Zayde ( and our first Yankee games together ). I attended some of the best schools in the world – Stuyvesant HS, the Wharton School of the University of Pennsylvania and the NYU Stern School of Business. I parlayed all of that into a successful career and for the last nineteen years built from scratch LakeView Asset Management (LVAM). Through that business, I am proud to have enriched the lives of my family and clients.
As I recently mentioned, I was going to roll out some announcements. Let me preface by saying that I have many years left in the tank and am planning to bring LVAM to new and greater heights.
The first announcement is that I have been developing a new strategy which I am ready to officially roll out on May 1. That strategy, the LakeView Consumer Discretionary Portfolio will tap into my knowledge and experience in consumer stocks. The strategy will seek to better the S&P 500 Consumer Discretionary Sector Index (IXY) which will be the portfolio’s defined benchmark. The target companies will be in retail, restaurant, travel, hospitality, and entertainment industries (to name a few). More general information on that index is available here. The SPDR Consumer Discretionary ETF (XLY) attempts to replicate the IXY Index.
Given that the US Congress is continuing to prime the fiscal spending pump and the Federal Reserve is keeping their foot on the liquidity accelerator, consumers are going to have more free cash to spend on discretionary items. To the extent that they do, earnings and growth in this sector will accelerate. To the extent that they don’t spend the excess cash, that will flow into stock market investments. In other words, the Consumer Discretionary Sector is entering a sweet spot.
Currently, LVAM offers three stock-based strategies: Growth, Dividend/Value and Index Absolute Return. In terms of risk, the Consumer Discretionary Portfolio will rest between the Growth and Dividend/Value portfolios. I have reallocated some capital currently under management at LVAM ( including my own) in the existing strategies into the Consumer Discretionary Strategy. I am going to make an introductory offer to help launch this strategy. For the remainder of the second quarter and the entire third quarter, I will waive investment management fees for any new or existing client who brings in fresh new cash for management at LVAM in the Consumer Discretionary Strategy.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long XLY – although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right-hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
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